October 21st, according to news from China,
According to SpotCom data, in mid-October, acetic acid prices fell from their high levels. As of October 21, the average market price for acetic acid in China was 4,410 CNY/ton, a decrease of 9.26% compared to the price of 4,860 CNY/ton on October 11.
Recently, the acetic acid market in China has been operating weakly. Affected by a mix of bullish and bearish factors, such as the rapid decline in raw material prices, downstream resistance to purchasing high-priced goods, and expectations of increased supply, the price of acetic acid has continued to decline. Specifically:
Raw material prices have fallen sharply: With expectations of shutdowns at key downstream methanol facilities, the market has experienced a pronounced negative feedback effect, driving methanol prices down rapidly. Subsequently, prices have remained in a weak, range‑bound pattern, while cost‑based support for acetic acid has weakened significantly, leading to bearish market sentiment and a downward trend in acetic acid prices.
Supply expectations increase: Although some companies' facilities were shut down or operating at reduced capacity in mid-October, leading to a decrease in acetic acid production rates, previously short-stopped facilities such as Shunda in Henan and Jiatao in Hebei have restarted successively. Additionally, the new 1.5 million ton capacity from Guangdong Shengyuanda has been released, leading to an expected easing of spot supply in the market, which suppresses the upward space for acetic acid prices.
Weak demand: Earlier, acetic acid prices rose sharply, pushing up downstream production costs and prompting a decline in operating rates among downstream producers, which in turn dampened their purchasing appetite. At the same time, market resistance to higher-priced supplies intensified, leading to sluggish sales for traders and further driving the negotiation floor for acetic acid lower.
Market outlook: In the short term, negative factors are concentrated in the acetic acid market, and prices are expected to remain weak.
In the long term, the upstream methanol market is expected to experience a weak and volatile trend, with moderate cost support; downstream resistance to high prices is evident, leading to strong market constraints; on the supply side, as maintenance units resume operation, the supply volume is expected to increase, and the overall market performance is weak. It is anticipated that the acetic acid market will continue to decline, and attention should be paid to the supply situation and downstream demand in the Chinese market.
